Does Regulatory Governance Matter for Financial System Stability? An Empirical Analysis

This paper provides empirical evidence that the quality of regulatory governance-governance practices adopted by financial system regulators and supervisors-matters for financial system soundness. The paper constructs indices of financial system soundness and regulatory governance, based on country...

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Bibliographic Details
Main Author: Das, Udaibir
Other Authors: Chenard, Kina, Quintyn, Marc
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2004
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Does Regulatory Governance Matter for Financial System Stability? An Empirical Analysis  |c Udaibir Das, Marc Quintyn, Kina Chenard 
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300 |a 43 pages 
651 4 |a United Kingdom 
653 |a Insurance companies 
653 |a Finance, Public 
653 |a Depository Institutions 
653 |a Institutional Investors 
653 |a Commercial banks 
653 |a Public-Private Enterprises 
653 |a Pension Funds 
653 |a Banks 
653 |a Finance 
653 |a Industries: Financial Services 
653 |a Financial sector stability 
653 |a Banks and banking 
653 |a Public Enterprises 
653 |a Public sector 
653 |a General Financial Markets: Government Policy and Regulation 
653 |a Financial Instruments 
653 |a Micro Finance Institutions 
653 |a Mortgages 
653 |a Non-bank Financial Institutions 
653 |a Banks and Banking 
653 |a Civil service & public sector 
653 |a Macroeconomics 
653 |a Financial services industry 
653 |a Banking 
653 |a Finance: General 
700 1 |a Chenard, Kina 
700 1 |a Quintyn, Marc 
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520 |a This paper provides empirical evidence that the quality of regulatory governance-governance practices adopted by financial system regulators and supervisors-matters for financial system soundness. The paper constructs indices of financial system soundness and regulatory governance, based on country data collected from the Financial Sector Assessment Program (FSAP). Regression results indicate that regulatory governance has a significant influence on financial system soundness, along with variables reflecting macroeconomic conditions, the structure of the banking system, and the quality of political institutions and public sector governance. The results also indicate that good public sector governance amplifies the impact of regulatory governance on financial system soundness